The

INSURANCE

RECORD THE VOICE OF TEXAS INSURANCE Published Since 1934 • Dallas, Texas February 26, 2009 • Vol. 75 No. 5

hJR 66 Sics AG on Insurance Fraud

AUSTIN—House Joint Resolution 66, authored by Wyane Christian (R-Center) proposes a constitutional amendment to permit the State Attorney General to prosecute offenses against public administration, including ethics offenses, and offenses involving insurance fraud.

The plan is to amend the Texas constitution by permitting the Attorney General, to the extent provided by general law, to represent the state in the district and inferior courts in the prosecution of such offenses.

Rationale Revealed Sources in Rep. Christian’s office tell The Insurance Record that the resolution is in no way intended to effect how the Texas Department of Insurance does its business. Rather

it aims to move the prosecutorial responsibility to the Texas AG — a state wide elective office — and out of a state-funded section of the office of the Travis County District Attorney — an official beholding only to the voters in that one county.

If passed, the amendment would be put to Texas voters for an up or down vote this November.

Militant Ethicists

In a related matter, 81R HB 1400 by Rep. Christian, would create a public integrity unit in the office of the attorney general to prosecute offenses against public administration, including ethics offenses, and offenses involving insurance fraud.

Perhaps Pollution exclusion
excludes Overmuch

AUSTIN—In Commissioner’s Bulletin #B-0007-09, TDI expresses concern on the application of the pollution exclusion contained in various liability insurance policies.

In This Issue Judge OKs Seizure of Assets in $20 Million-Plus Investment 3

LEGAL DIMENSIONS –
New SOAh Rules for Agent Cases 6

So-Called Streamline Bill Proposes Blind Oversight

Let Us Work Together (or else)

A recent court filing (Great American Insurance Company vs. Boxer Property Management Company, Southern District of Texas, Houston Division, CV-03464) raised concerns as to the potential application of the pollution exclusion to be used to deny coverage for a claim in the absence of a pollution incident. The department is concerned that the language in pollution exclusions could be in- continued on page 5